Price Optimization for Wholesale Distributors and Manufacturer

As a manufacturer or distributor striving to maximize your profitability, you have undoubtedly worked diligently to cut costs to the bone and push sales volume to the max. But there’s another stone you may have left unturned: strategically managing your prices. Here you have new potential to excel! Of all the profit oriented pricing drivers, price offers the strongest leverage to improve profit margins. In fact, pay a quick visit to our pricing calculator to see how various price changes can impact your profitability.

Setting optimal prices that factor in pricing sensitivity for each customer, market and product for your thousands of products might seem to be an overwhelming task. That’s why so many manufacturers and distributors opt for the ease of a cost-plus pricing model. But cost-plus can leave a tremendous amount of profit potential untapped. Price Point Partners looks more deeply and scientifically into the variables that influence customers’ price sensitivity and the prices they’re willing to pay, and then creates an easy-to-apply pricing structure.

Using proprietary analytics, we review historical pricing data taken from your invoices, identifying pricing inconsistencies. We identify transactions lying outside of the optimal price range and determine how to pull those outliers back into the high-profit range.

Across-the-board price increases aren’t the answer. Price Point Partners takes a surgical approach to price optimization, identifying areas where selective price adjustments will yield improved margins and revenue. We consider these factors about each product:

Is it a commodity or an exclusive product?

How specialized is the market?

What is the price sensitivity of this product across customer segments?

What is the competitive environment for each transaction?

Then we create a pricing framework that moves your outlying transactions into the optimal price range.